Legal Entity ID
As an outcome of the financial crisis of 2008, the financial industry in collaboration with global regulators, market authorities and trade associations created a standard Legal Entity Identifier (LEI) to uniquely identify all business and legal entities involved in all aspect of the financial process. Implementation of the LEI is now being coordinated by the LEI Regulatory Oversight Committee
The LEI is needed by regulators and market authorities to evaluate risk, facilitate linkages and better manage systemic relationships. There is broad support for the LEI among financial institutions. These firms need this identifier for both regulatory reporting and to automate business processes. The LEI standard is a 12 character, alpha-numeric code that contains no embedded intelligence. It is a baseline identifier that provides a foundation for many applications from risk analysis → to automation of business processes → to better management → to improved client service.
The EDM Council was an active participant in the LEI development process and a member of both the LEI Steering Committee and the Financial Stability Board’s LEI Public Sector Advisory Group. We are now working with the financial industry on issues related to hierarchical reporting and on the use of LEI aligned with FIBO-Business Entities for tracking critical “ownership” and “control” relationships.